What theory implies that you should allow another firm to perform work activities for your company if that company can do it more productively than you can?
A) theory of competitive advantage
B) theory of core competencies
C) theory of comparative advantage
D) theory of outsourcing
E) theory of offshoring

Question

Quizplus · Accepted Answer

The theory of comparative advantage suggests that a company should allow another firm to perform activities or produce goods if the second firm can do so more efficiently or at a lower cost. This theory is fundamental in international trade and economics, advocating for specialization and trade benefits.

What Theory Implies That You Should Allow Another Firm to Perform